Atlantic Canadians most concerned about current debt levels in the country

There was a significant jump in the number of east coast Canadians who are concerned about their current debt levels, according to a new poll.

Conducted by Ipsos, the findings released July 14 show that more than half of Atlantic Canadians (54 per cent) are worried about their debt, the highest among all the provinces. This represents a 10-point increase since the last quarter, the polling agency notes; the data is collected through the MNP Consumer Debt Index.

The latest round was collected between June 9 to 13 and used a sample of 2,000 Canadians older than 18 years who were interviewed.

Fewer Canadians (48 per cent down from 62) on the east coast believe they are able to cover all living expenses in the next year without needing more debt, which is the largest drop among all the provinces.

“Reflecting this financial strain, Atlantic Canadians are the most likely among the provinces to say they are constantly putting out financial fires, facing one unexpected cost after another,” the poll reads. “More than one-quarter say they feel stalled–having to put their lives on hold.”

The ongoing burdens of cost-of-living in the provinces are translating to day-to-day financial strain, with Atlantic Canadians the most likely (39 per cent) to report living paycheque to paycheque. Two in five are anxious or stressed about their situation, and over a third are being more cautious on how they spend their money.

This folds into how they are less likely among all the other provinces to have discretionary spending (29 per cent) or be able to build savings and emergency funds (25 per cent). Financial debt pressure is impacting whether Atlantic Canadians buy houses, have children or change careers, the report reads.

“Even after two interest rate pauses, vulnerable households that are making careful choices and delaying major decisions may be struggling to get ahead amid the current uncertainty around costs and income,” Tina Powell, a local Licensed Insolvency Trustee with MNP LTD, said.

Nearly 1 million close to insolvency

The report is noting just how many Atlantic Canadians have changed their tune toward debt. Several times in the details, Ipsos notes how dramatically the numbers have changed between this quarter and the last, showcasing the nature of the “precarious financial footing” many are on.

One of those indicators is how more than a third of Atlantic Canadians say they are $200 or less away from financial insolvency — unable to pay debt as it becomes due — each month, a jump to 37 per cent. This does include about 24 per cent who say they don’t make enough to cover bills or debt payments.

“Debt stress can be incredibly isolating, but you’re not alone in experiencing financial strain right now. The sooner you reach out for help, the more options you may have,” Powell said.

A large 15-point increase in east coast Canadians reporting that rising interest rates could drive them to bankruptcy (49 per cent). Even if rates were to lower, more than half of these Canadians (56 per cent) are concerned about their ability to repay debt. This increased nine points since last quarter, the poll reads.

“For a lot of individuals, the anxieties surrounding interest rates have persisted,” says Powell. “Years of climbing costs and shrinking savings have left many with concerns about what might still happen.”

The poll is accurate to within ±2.5 percentage points, 19 times out of 20, had all Canadian adults been polled.